I have written about owning a Kindle previously here on my blog. The New York Times occasionally does too. Publishers and Amazon are debating whether giving away free books occasionally works for authors and publishers. There is a well written article here: http://www.nytimes.com/2010/01/23/books/23kindle.html?pagewanted=1&fta=y Giving away a free book works in the ereader world for me often because then I am motivated to buy the whole series by that author. My free book ereader policy is that I download every free ereader book on the kindle/amazon without deciding if I want or need the book. If I read it and like the book, I download the books by the author which means the author makes money (s)he would not have made otherwise. To me this is what I used to do when I went to Barnes and Noble or the library and browsed or read there.

I have bought dozens of books that I wouldn’t have otherwise even known about after reading “the first one free.” I think its a great policy.
Yeah, I like freebies and if I believe the work is worthwhile I will support the writer by buying their next publication.
I think it’s a good marketing ploy.
The bad is, the poor writer slaves over a whole book for nil, nothing, zilch the first time in the hope that their work is good enough to sell the next time and that consumers support them… scary stuff